This rating action follows the placement of its parent, Employers Reinsurance Corporation (ERC), under review with negative implications. (See related A.M. Best press release dated February 3, 2005.) The ratings of GE Frankona Group are based on the financial support from the parent in the form of claims guarantees to each subsidiary. Consequently, a deterioration of ERC's financial strength could have a negative impact on GE Frankona Group's ratings.
The financial strength ratings of A (Excellent) have been placed under review with negative implications for the following companies of GE Frankona Group:
GE Frankona Rueckversicherungs-AG
GE Frankona Reinsurance A/S
GE Frankona Reinsurance Limited
GE Frankona Reassurance Limited
GE ERC Strategic Reinsurance Limited
Luxembourg European Reinsurance S.A.
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A.M. Best Co., established in 1899, is the world's oldest and most authoritative insurance rating and information source. For more information, visit A.M. Best's Web site at http://www.ambest.com.
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